Posts

What the Vaccine News Means for Markets

/in , /by

What’s in Today’s Report:

  • Vaccine Playbook (Specific Sectors and ETFs)
  • What the Vaccine Means for Markets
  • Why Stocks Have Rallied (Four Reasons – Not Just the Election and Vaccine)
  • Weekly Market Preview:  How High Can Stocks Go?
  • Weekly Economic Cheat Sheet:  Jobless Claims the Key Number on Thursday

Futures have exploded to new all-time highs on positive vaccine results from Pfizer, combined with election uncertainty.

Pfizer just released results stating its COVID-19 vaccine is more than 90% effective in preventing COVID-19 infection among people who had not been previously infected.  That 90% is much higher than was expected.

Election clarity had stocks higher pre-vaccine news as Biden was projected to win the Presidency.

Today it’s all about momentum and as stocks should surge led by value, cyclicals and the “Get out and spend” sectors.

Vaccine Playbook

/in , /by

What’s in Today’s Report:

  • Vaccine Playbook (Results Hopefully Coming Next Week)
  • September Durable Goods Orders Takeaways
  • Consumer Confidence Miss (Chart)

Stock futures are tracking global shares lower this morning with European markets hitting multi-month lows as coronavirus cases continue to surge and multiple governments, including France and Germany, discuss new lockdowns.

There were no notable economic reports overnight and the only report in the U.S. today is: International Trade in Goods (E: -$85.0B).

There are no Fed speakers scheduled to speak today however the Treasury will hold a 5-Yr Note Auction at 1:00 p.m. ET, and given the fact that the yield curve has come into focus recently with the 10s-2s spread near 2020 highs, any material impact the auction has on the yield curve could impact stocks (new highs would be negative right now)

Finally, earnings season remains in full swing with: BA (-$2.33), UPS ($1.86), GE (-$0.06), and MA ($1.65) reporting ahead of the bell while V ($1.09) and F ($0.22) will release Q3 results after the close.

The recent resurgence in global COVID-19 cases and subsequent moves by multiple major governments to revert to lockdown measures to combat the spread of the virus has taken over as the main influence on risk assets right now, especially with hopes for a pre-election stimulus deal effectively dead at this point.

So today, the market’s main focus will be on the latest outbreak statistics and various governments policy reactions, especially in the U.S. And if we see renewed lockdowns implemented in various hotspots, then stocks could extend this week’s selloff, potentially in a big way.